ISLAMABAD: The government is optimistic about the success of Pakistan International Airlines’ (PIA) pri-vatisation this time around, with critical waivers from the International Monetary Fund (IMF), improved balance sheets, and a clearer transaction structure, said Muhammad Ali, Adviser to the Prime Minister on Privatization.
Ali said earlier efforts to privatise the PIA stalled because the IMF did not grant essential waivers needed to finalise transaction terms. “This time we have those approvals — particularly for GST exemptions on aircraft and equipment,” he said. The airlines equity, which was previously negative Rs45 billion, is now in the positive, and performance has also improved, he said while speaking on Geo News’ “Naya Pakistan with Shahzad Iqbal.”
PIA’s negative equity of Rs45 billion — including Rs17 billion owed to FBR and dues to the Civil Aviation Authority — are being shifted to a holding company.
This is in response to investors’ demands that, when PIA is sold, the majority of proceeds should remain within the company, with only a small portion going to the government.
The purpose of this internal investment should not be to reduce liabilities, but to address PIA’s urgent needs — such as acquiring new aircraft, upgrading equipment, and boosting capital investment. The primary goal is to revive PIA and restore its status as a major regional airlines, and eventually, a competitive global carrier. For that, substantial investment is c